News & analysis of the United States Court of Appeals for the Third Circuit, by Matthew Stiegler

Two new opinions, including a significant FCRA consumer win

Philadelphia’s public-transit authority, SEPTA, violated the Fair Credit Reporting Act by failing to send job applicants who had prior criminal convictions copies of the background checks that it relied on when it rejected their applications. The district court rejected the applicants’ FCRA claims on the ground that they had alleged only a bare procedural violation without any concrete injury such as an error in their background check.

Today, the Third Circuit reversed in part because “the FCRA does not condition the right to receive a consumer report on whether having the report would allow an individual to stave off an adverse employment action. Rather, the statute applies to all consumers.” As to standing, the court reiterated its recent caselaw “‘decidedly in favor of allowing individuals to sue to remedy violations of their statutory rights, even without additional injury.”

Joining Fisher were Chagares and Restrepo. Arguing counsel were Deepak Gupta of Gupta Wessler for the applicants and Elizabeth Malloy of Cozen O’Connor for SEPTA.

The Third Circuit today held that, under Pennsylvania law, a title insurer’s duty to defend an insured is assessed claim-by-claim by comparing the insurance contract to the complaint, rejecting application of the “in for one, in for all” rule.

Joining Ambro were McKee and Restrepo. Arguing counsel were Michael Coughlin of Kaplin Stewart for title insurer and Brett Messinger of Duane Morris for the insured.